Bud Light Sales Plummet Amidst Controversy: Retailers Desperate to Offload Unwanted Beer

In a string of unfortunate events for Anheuser-Busch, Bud Light sales have hit a six-week downward spiral, leaving retailers scrambling to get rid of the once-beloved beer. The sharp decline comes on the heels of the beer giant’s ill-fated collaboration with transgender influencer Dylan Mulvaney, resulting in a massive boycott that has dealt a severe blow to Bud Light’s sales, stock price, and reputation.

According to industry data reviewed by Beer Business Daily, Bud Light volumes took a staggering 28.4% dive in the week ending May 13, following a 27.7% decline the previous week. The impact is evident on store shelves, where Bud Light and other Anheuser-Busch products are being heavily discounted to entice customers to purchase them.

Reports reveal that Bud Light 24-packs have been priced as low as $3.49 in some stores, as retailers desperately try to unload their excess inventory. It’s not just Bud Light feeling the heat, as other Anheuser-Busch brands have also taken a hit. Budweiser Red volumes were down 14.9% for that week, while Michelob Ultra saw a decline of 6.8%.

Interestingly, Bud Light’s misfortune has become an opportunity for its competitors. Coors Light sales have seen a significant boost of 16.9%, while Miller Lite has experienced a 15.1% surge, according to Beer Business Daily.

Faced with this sales catastrophe, Anheuser-Busch has implemented a promotional rebate ahead of the Memorial Day weekend. The rebate offers customers an amount equivalent to the purchase price of one 15-pack or larger, up to $15, paid via an Anheuser-Busch Digital Prepaid Mastercard. However, with some retailers selling 15-packs or larger of Budweiser products for less than $15, this rebate essentially makes those purchases free (excluding sales tax or state restrictions).

Beer Business Daily analysts anticipate more promotional efforts throughout the summer in an attempt to reverse Budweiser’s declining sales. They even suggest that this could become a summer of promotions rivaling the aftermath of Hurricane Katrina in 2005 when a surplus of beer inventory sparked an intense price war. This time, however, the external event causing the turmoil is the association with Dylan Mulvaney.

“The only difference this time is the external event is only negatively affecting one brewer,” states the Beer Business Daily report, highlighting the significant financial toll the decision to collaborate with Mulvaney has taken on Anheuser-Busch. The company has suffered losses of nearly $19 billion, with shares plummeting by 14%. In contrast, the S&P 500 has experienced a 2.5% rise during the same period.

As Anheuser-Busch grapples with the aftermath of this controversy, it remains to be seen whether the promotional efforts and subsequent price wars can salvage Budweiser’s reputation and restore its declining sales.